VAT does not apply to transfers of shares or businesses. However, depending on the nature of these assets, VAT may be levied on individual asset transfers. The main substantive clauses of a share purchase agreement are: – recitals. You indicate the context of the transaction. In the event of a conflict between the recitals and the material conditions of the agreement, a court will attempt to assess the intention of the parties and may decide that the material conditions prevail. The parties. Note that the target company is generally not a party to the share purchase agreement. Definitions. Transfer of shares. Price. Payment and transfer of ownership. Conditions of precedent (usually in France: approval of THE COMPETITION authorities of the EU and France, agreement of shareholders, prior authorisation by the tax authorities (for example.
B if the seller obtains securities and wishes to overs stake), reorganization of the transaction, sectoral consents, consents of relevant third parties (. For example, changes to the control provisions in contracts), information or consultation of workers that must be processed before the signing of a binding agreement (and therefore should not be considered as a precedent) , etc.). How the operation should be performed if there is a gap between the signature and the closing. Conditions (cooperation, termination and waiver of the previous conditions). Closing mechanics. For a corporation, the shares are transferred to.B the company by executing and providing a remediation form (order of movement) and the subsequent update of the company`s share register. This is a key step. Cedant`s bonds (including management until closing). Non-competition measures. Guarantees (generally, the structure of the company, including the assets and liabilities of the company, the main contracts, employees, social security payments, tax position, intellectual property rights, compliance with key rules (e.g.
B environment), – restrictions on warranties. The buyer`s rights. Guarantees for guarantees and guarantees. The clauses of the boilerplate platform, including confidentiality and public announcements, assignment and fees and registration. The transfer of shares of a limited company (anonymous company), limited partnership or simplified company (simplified corporation) must apply a registration fee of 3% (limited to EUR 5,000 per transaction).